With the advent of a massive interest in the Forex industry, the system has started to expand and it is spreading at a very fast rate. Just in the past couple of years, a large number of brokers have entered the scenario and have made trading accessible to almost, everyone.
But as a newbie in the trading system, what one must realize is that, the choice of a good broker[MI1] out of many is a very important one. And indeed by doing some keen research and keeping the correct criteria in mind, one can land with the right broker quite easily.
Following, are some of the factors that you need to consider while searching for the right broker:
1. Official Regulation
Any forex broker should be registered with the authorized regulatory organization in his/her respective country of practice.
As any valid US Forex broker is required to register with the Commodities and Futures Trading Commission or Securities and Exchanges Commission the same is the case with the brokers abroad. For example all UK based brokers should be regularized by the Financial Services Authority of the United Kingdom.
Before stepping in to trade make sure that the broker you are going to deal with has a genuine official regulation, along with a solid financial standing. Any broker that does not meet this criterion should be left out of consideration immediately.
2. Financial Protection
Not being provided with a sufficient level of financial security by the broker is a major danger sign for any trader. While investing, the money earned by your sweat and blood, getting ripped off by a clever broker is the last thing you would want. So, do not sign up if you are not being provided with enough security information by the broker. Always ascertain that your personal data is encrypted in order to secure all your transactions.
3. Authenticity and Reliability
The sign of a good Forex broker is that, he offers up-to-date information on market prices and other trading scenarios.
Hence, an efficient platform providing an up-to-date around the clock info and showing prices in real time is a sign of a reliable trustworthy broker.
4. Data charts
Choose a broker that provides a complete info package, allowing you to keep an eye on all the trade ups and downs on your behalf. Such graphing and charting patterns let you know about new trading opportunities and help you plan your next move. Make sure that you are being provided with a market analysis tool, a 24/7 news feeds, a third party reassurance and a clean background record.
5. Easy Access
Choose a broker that fully caters to your needs to have a proper access to market information, whether it is from your phone or via some other gadget.
This allows you to easily analyze any updates in the trading world that are crucial to your trade.
6. Trading style
Make sure that it suits your trading approach and allows you an access to a customizable platform with the trading strategy of your own choice. This sort of matchmaking between the customer and the broker is very important for a healthy trading experience.
7. Customer friendly
A customer friendly platform is very important, as you never know when you are going to need help, owing to the constant ups and downs of the market.
A great customer support allows you, an easy access to the staff in order to seek any assistance or clear any query, even if it's on a very short notice.
Such a case allows the trading experience to be a very good one.
Mentioned above are just some of the important criteria’s to be kept in mind while choosing the right Forex broker.
There can be other factors too, that you may want to consider while making such a decision.
The leverage being provided, the payment methods, the minimum account deposit demand and some other similar criteria’s may also be crucial to your trade, depending on your needs.
Also remember, that choose a broker that suits YOUR needs and that, does not have to include all the above factors as, they can always vary from customer to customer.